Abstract

The purpose of this study was to establish the effect of monetary policy on financial performance of commercial banks in Kenya. This study adopted a descriptive survey of commercial banks in Kenya. The main reason for selecting descriptive research design was because it provides a knowledge base when little is known about a phenomenon or such things as clarification of a situation, classification of information, or description of subject characteristics that will aid in the refinement of the research problem, formulation of the hypothesis, or design of data collection and analysis procedures. Secondary data was collected from financial reports of commercial banks in Kenya from 2008 to 2012 Regression analysis was conducted in order to establish the effect of monetary policy on financial performance of commercial banks in Kenya Monetary policy was measured using three variables which were the independent variables of the study. These variables included the deposits made by the commercial banks to the Central Bank of Kenya, the base interest rate that is usually provided by the Central Bank of Kenya and the amount of money the commercial banks have invested in government securities. The dependent variable of the study was the profitability of the commercial banks in Kenya and this was measured using the return on assets as a percentage. The findings from the study confirmed that monetary policy explained 54% of the variance in the profitability of the commercial banks in Kenya. This was a clear indication the variance that remained unexplained by the monetary policy variables was 46% and this could only be explained by other variables that were outside the scope of this study. These findings are in line with that of Fatade (2004) who in studying the effect of monetary policy on performance of banks in Nigeria established that various monetary policy measures instituted in the country over the years have directly and indirectly affected performance of the banking sector in a number of ways while includes Banks profitability, Deposit/Savings mobilization Loans & Advances and so on. He further confirmed that the effectiveness of bank's performances depends on the instruments used in macroeconomic policies and the prevailing economic conditions and the deregulation of the sector has led to a number of improvements. . He further confirmed that the effectiveness of bank's performances depends on the instruments used in macroeconomic policies and the prevailing economic conditions and the deregulation of the sector has led to a number of improvements. In the year 2009, monetary policy still explained a significant variance on the profitability of commercial banks in Kenya but with a reduced percentage than what it was in 2008. In 2009 the variance explained was 49.2% which was less than half of the total variance on the profitability of the commercial banks. The same trend was replicated in the subsequent years 2009, 2010 and 2011 The findings further indicate that monetary policy variables such as the amount of investments in government securities; amount of funds commercial banks deposit with CBK and the average base rate of the CBK have a significant impact on the profitability of commercial banks in Kenya.

Agricultural growth is fundamental to broader economic growth and to successful poverty reduction in sub-Saharan Africa, where high concentration of the poor population is in agriculture sector and where smallholder farmers constitute majority of the agricultural and rural population. However, much of Africa’s agriculture is characterized by semi-subsistence, low-input, low-productivity farming systems, which is not favorable to achieving broadbased growth. Transformation to a more commercialized agriculture is, therefore, unavoidable if the broad-based growth is to be achieved. Better and more accessible markets are a fundamental ingredient to a more commercialized agriculture. Yet in developing countries, particularly in sub-Saharan Africa, markets for agricultural inputs, outputs and finance remain thin and infrastructure is poor, resulting in high transaction risks and costs. While market failure is a major constraint to many smallholder farmers, the effects are compounded for marginalized groups such as women, the poor and producers in areas with low agricultural potential (agriculturally less favored areas) because of their circumstances. Addressing the challenges faced by the marginalized groups in accessing agricultural markets remains a necessary priority in efforts to foster broad-based agricultural growth, and thereby contribute towards poverty reduction. Identifying specific agricultural commodities/value chains as well as interventions that could offer the best opportunities for sales, income, and poverty alleviation for marginalized groups is important in the process of making beneficial investments to these groups. Analysis of value chains in combination with the characteristics of the marginalized groups of interest as well as characteristics of the potential interventions would be helpful in informing the design of such interventions for greater impact. This study sought to identify critical challenges that need to be addressed and assess growth opportunities that could be exploited to improve access to and participation by women smallholders in agricultural markets. This study builds on findings from an earlier study carried out as a joint collaboration between Tegemeo Institute, Egerton University, World Agro-forestry Centre (ICRAF) and Makerere University on “Participation in Agricultural Commodity Markets among the Poor and Marginalized in Kenya and Uganda”, which used household panel data to examine trends and patterns in smallholder participation in agricultural markets. The current study focused on sweet potatoes value chain, which the earlier study identified as holding potential for integrating small holder farmers in markets, and women as a marginalized group. The objective was to assess opportunities for growth in the value chain with a view to identifying investment areas for increased market participation especially for women. The study site was Kabondo Division, Rachuonyo South District, Homa Bay County, the leading sweet potato production area in Kenya. The study adopted a value chain approach. A sample of 100 sweet potato farming households and two farmer groups were interviewed. Two focus group discussions were also held with sweet potato growers in the area. In addition, interviews were also conducted on a range of sweet potato traders and key ii informants along the value chain, including input suppliers, commodity traders and service providers, including government agricultural officers. Results of the study showed that women dominate all the production and trading nodes of the sweet potato value chain. In addition, the study revealed opportunities that if harnessed have the potential to integrate women more in the sweet potato value chain and improve their welfare through potential benefits from the improved value chain. However, these opportunities exist alongside constraints which need to be addressed in efforts to make the value chain work better for the benefit of the players, who are mainly women. For the producers, major constraints identified were: • Lack of access to affordable credit for production, mainly due to stringent conditions and requirements by formal institutions offering credit • Unorganized spot markets, where producers have little bargaining power on setting grades and prices. This results in low producer prices. • Lack of enforcement of law concerning sweet potato standard packaging units, making producers lose • Opportunistic behavior by brokers in major urban markets increases transaction costs • Erratic weather patterns • Incidences of pests, especially sweet potato weevil • Limited access to agronomic advice, and • High cost of labour For traders, the major constraints identified were: • Poor feeder roads and high transport costs. The cost of transport accounted for over 50 percent of marketing costs incurred by large traders, who move the produce from the production area to major urban markets including Nairobi, Gikomba and Mombasa • Highly fluctuating commodity supply in the market, because of lack of storage facilities in the face of seasonal production. The perishable nature of the commodity cannot allow for long shelf-life without proper storage facilities • Lack of affordable credit services for business expansion, and • Opportunistic behavior by brokers in major urban markets. Despite the above constraints, there are opportunities that if harnessed can lead to better integration of women in the commodity market. First, the conducive agro-ecology for production and growing demand for sweet potato offer opportunity for growth in the production and marketing of sweet potatoes. Potential for processing is also an avenue that can be explored to foster growth in demand. Secondly, the already existing commercial- iii oriented production and fairly well established institutions along the chain, especially at production level, provide a more stable platform for investment both in production and marketing of the commodity. Thirdly, a wide network of stakeholders working to promote the enterprise is an indication of the potential for growth in the sweet potato value chain, and synergies by the stakeholders can be harnessed for greater impact. The goodwill by the government policy under the traditional high value crops initiative provides an opportunity for addressing especially infrastructural and policy regulatory constraints along the value chain. Finally, fairly well-established collective action institutions around sweet potato production can be a good avenue to engage with especially women to promote collective action around sweet potato production and marketing and provision of production and marketing facilitative services. Three important constraints that need to be addressed in efforts to tap into the opportunities were identified. First, liquidity constraint among women producers is important. Currently, many producer groups offer credit facilities to their members. Strengthening the capacity of the producer groups to continue offering credit services to members may be desirable. However, even with strengthening, the adequacy of these groups to meet financial needs of producers to enable them increase commercial production of sweet potato production is an issue that needs careful thought. Secondly, producers need strengthening to have better bargaining power on setting grades and prices. This could be done through strengthening the existing collective action institutions among producers to engage in collective marketing. Thirdly, there is need to ensure enforcement of the law concerning sweet potato standard packaging units, which is documented under the The Local Government Act (Cap. 265). Finally, there is need to improve bargaining strength of producers and traders in the major urban markets to counter the opportunistic behavior by brokers in those markets.

Award of the Degree of Masters of Science in Finance.

abstract

The consumption of milk and milk products serves as a good source of complete food. In spite of that, the use of antibiotics by farmers for the treatment of domestic dairy animals has increased which has led to antibiotic residues in foods of animal origin such as milk due to antibiotic abuse. The main focus of the current study was to determine knowledge on the antibiotics, the usage, and general practices on handling the same by small holders’ milk producers. The study makes contribution towards improved quality and safety of commercially produced milk from the smallholders in Bomet, Nakuru and Nyeri counties in Kenya. The study was carried out using a mixed method approach where farmers, traders and cooperative society staffs were interviewed, and milk samples taken to determine antibiotic usage and levels. Data was recorded on chemicals and drugs used to treat dairy herds, milk hygiene and rejection of milk among farmers. The study alsodetermined the type of antibiotics and levels of residues in milk supplied by smallholders to processors. A total of 108 milk samples comprising raw milk purchased and sampled from farmers were analyzed for the presence of Beta-lactams, Tetracyclines, and sulphonamides residues using rapid tests in the field and High-Performance Liquid Chromatography (HPLC) for quantification in the laboratory. Majority (93.3%) of the respondents had basic education level of training on dairy management and diseases and reported dairy animals as frequently infected with diseases such as mastitis (86%), East Coast fever, and Foot and Mouth. Almost all (98%) farmers used manual method of milking, and more than half (66%) used aluminium cans during milking. Farmers practiced hygienic milking by cleaning the teats (97%). However, very few (2%) wore gloves during milking. Most farmers (85.9%) did not know the type of antibiotics they used. However, more than half of the farmers (55.6%) reported that milk from a treated cow was discarded, 22.7% of them used the milk to feed calves. Most farmers (93%) stated that they did not experience milk rejection; however, the few who had their milk rejected indicated acidity, bad flavour and adulteration as some of the causes. Antibiotics residues were detected in milk samples from all the counties, differing in concentration and no significant difference (P≥ 0.05) among the three Counties. The most commonly detected antibiotic was oxytetracycline while the common beta-lactam detected was ampicillin in all three sites. The sulphonamides detected were dapsone, sulfachlorpyridazine, sulfadiazine, sulfadimethoxine, sulfadoxine, sulfamerazine, sulfamethoxazole, sulfamethoxypyridazine, sulfamonomethoxine, sulfapyridine, sulfisoxazole, and sulfithiazole at different concentrations. More than half (55.6%) of samples collected tested positive for at least one antibiotic residue. The mean concentrations for oxytetracycline were 0.017mg/l in Bomet, 0.016mg/l in Nakuru and, 0.015mg/l in Nyeri. In conclusion, farmers’ milk handling practices along the value chain was good and this is due to their good knowledge on hygienic practices, however there was lack of knowledge on the use of antibiotics and risks associated with the misuse of the same. The occurrences of such residues pose health risks to consumers hence the need for proper monitoring and control of antibiotics in the milk supply chain.

Abstract

Award of Degree of Master of Business Administration

The main purpose of the study was to examine impact of IMF/ World Bank Structural Adjustment Programs on developing countries with their application in Kenya. The Globalization of the world economy especially since the Second World War has given rise to large global inequalities which has been responsible for an increase in the number and proportion of human population suffering from absolute poverty and starvation. Dependency theory, argues that the IMF and the World Bank policies and programs have indeed been heavily criticized for many years and have been seen as unhelpful and sometimes difficult to account, as they have led to increased dependency by developing countries upon wealthier nations. Data was mainly be derived from secondary and primary sources. The data collection tools for the secondary data that were in-depth information gathering, and document analysis. The study concludes that IMF/World Bank Structural Adjustment Policies increase poverty and cause underdevelopment. The study concludes that social sectors such as health and education are most affected by these policies as less money is put in social projects by governments’ hence the underdevelopment.

Chilli is an important commercial crop grown worldwide and used as a condiment, culinary supplement, or vegetable. It's mainly consumed as a dried chilli powder and in other forms such as whole green and red chillies, chilli flakes, sauce, and pickles. Chillies are quite nutritious and are a good source of carbohydrates, proteins, lipids, fibre, mineral salts, and vitamins; however, they are perishable, and a large quantity of them is lost due to inadequate post-harvest handling technologies. Traditionally, chilli has been preserved through direct sun drying, but this method has the disadvantage of contamination by foreign matter and attack by animals and insects. This method also depends on the sunshine hours of a particular area, thus taking a long time. Solar drying is a drying technology that involves the usage of solar drying panels that are economically and environmentally friendly. The moisture content of chillies can be reduced over a shorter period. The products are protected from contamination from foreign matter, insects, and fungal contamination, thus the high-quality dried chilli. The farmer can easily use this method. Moisture sorption isotherm curves showed the inverse relationship decreasing as the temperature increases at constant relative humidity. The analysis was evaluated using the static gravimetric technique with a salt solution to create different relative humidities. The accelerated shelf life method was used where the chillies were stored in the oven at 56 °C. The analysis was done every two days up to the twelfth day, packed into aluminium packages, glass jars, and plastic containers. Fresh chillies were dried to reduce losses associated with quality and microbial loss due to the high moisture content of fresh chilies. Drying was done both for oven and solar drying at 60 °C. Different pre-treatment methods involved blanching with hot water at 85-90 °C and acetic blanching at 90-100°C and soaking in pre-treatment of Na2S2O5 and CaCl2 solution for ten minutes. The physiochemical, nutritional, and microbial characteristics of chillies were then analyzed for oven and solar-dried chilli products. With sensory evaluation, consumer testing xviii affective/ preference test was used with the scores noted over the standard seven-point hedonic scale where seven represented "like very much," and 1 represented "dislike very much ." A panel of 22 participants was used. Parameters to be evaluated were Colour, taste, texture, astringency, bitterness, flavour, and overall acceptability. A meat curry stew was used in tasting the chillies with plain white rice as a carrier. Consumer preference questionnaires were given to the participants to fill in as they conducted the analysis. This study evaluated the quality and safety of solar-dried selected chilli varieties grown in Kenya by solar drying fresh chilli products using solar tunnel driers. Optimizing drying chillies using oven driers, the temperature of 60 °C was found to be the most appropriate as it had minimal effect on the quality characteristics of chillies that included vitamin A, vitamin C, and Colour. The newton model was also used in fitting the drying kinetics data and was found to be a good fit for the data as it had a residual value (Coefficient of determination or R 2 ) close to one of 0.9797 at 60 °C solar drying. The isotherms also exhibited the phenomenon of hysteresis, where the equilibrium moisture content was higher at a particular equilibrium relative humidity for the desorption curve than for adsorption. The G.A.B. (Guggenheim- Anderson-de Boer) model applied in fitting the experimental data at the temperatures of 50 °C, 55 °C, 60 °C, 65 °C and 70 °C which was found to have good prediction accuracy indicated by the high values of R 2 (Coefficient of Determination) and the S.E.E. (Standard Error of the Estimation). Of the three packagings used, the aluminium package was found to be the best in terms of nutrients retention [vitamin A of 8.9mg/100g, vitamin C of 13.66g/100g and Colour (Colour was however fairly constant in all the three packages at an average of 1.3 arc tan)] after the end of the shelf life analysis. The microbial analysis was, however, higher in the aluminium package at 2.301 CFU/G for the total viable count and 2.699 CFU/G for yeast and mold. This was attributed to inappropriate pre-processing of the chillies before and during drying that increased the microbial load in the final product after drying. The microbial load for glass and plastic packages was 2.699CFU/G and 2.301CFU/G, respectively, for the total viable count with no growth for yeast and mold. There was a significant difference in all the parameters analyzed, with more beta carotene retention for oven-dried chillies, with the range being 28.4 to 23.2mg/100 g. This was in agreement with reports done by (Kamal et al., 2019). The ascorbic acid quantity was also significantly different, with ranges from 52.44 to 24.32g/100g. The effect of the pre-treatment on Colour was also significant. The microbial analysis showed variations in the microbial also that were attributed to the areas of collection of the chillies or the type of treatment done to the chillies. There was no significant difference between oven-dried chillies and solar-dried chillies on the parameters of Colour, taste, astringency, bitterness, texture, and overall acceptability. The flavour, however, had some significant differences between solar and oven-dried chillies. The findings will inform on the commercial viability of dried chilli products concerning meeting food safety standards in Kenya to promote the industry's commercialization and value addition of chilli adoption. This can be done by solar drying fresh chillies and effectively storing the finally dried chillie products under aluminium packaging, showing the best nutritional composition preservation. Care should also be taken when handling both before and after drying to prevent recontamination of the final dry product. This study, therefore, will guide the solar drying technique of fresh chillies from the study of the quality characteriplastic packages was 2.699CFU/G and 2.301CFU/G, respectively, for the total viable count with no growth for yeast and mold. There was a significant difference in all the parameters analyzed, with more beta carotene retention for oven-dried chillies, with the range being 28.4 to 23.2mg/100 g. This was in agreement with reports done by (Kamal et al., 2019). The ascorbic acid quantity was also significantly different, with ranges from 52.44 to 24.32g/100g. The effect of the pre-treatment on Colour was also significant. The microbial analysis showed variations in the microbial also that were attributed to the areas of collection of the chillies or the type of treatment done to the chillies. There was no significant difference between oven-dried chillies and solar-dried chillies on the parameters of Colour, taste, astringency, bitterness, texture, and overall acceptability. The flavour, however, had some significant differences between solar and oven-dried chillies. The findings will inform on the commercial viability of dried chilli products concerning meeting food safety standards in Kenya to promote the industry's commercialization and value addition of chilli adoption. This can be done by solar drying fresh chillies and effectively storing the finally dried chillie products under aluminium packaging, showing the best nutritional composition preservation. Care should also be taken when handling both before and after drying to prevent recontamination of the final dry product. This study, therefore, will guide the solar drying technique of fresh chillies from the study of the quality characteriplastic packages was 2.699CFU/G and 2.301CFU/G, respectively, for the total viable count with no growth for yeast and mold. There was a significant difference in all the parameters analyzed, with more beta carotene retention for oven-dried chillies, with the range being 28.4 to 23.2mg/100 g. This was in agreement with reports done by (Kamal et al., 2019). The ascorbic acid quantity was also significantly different, with ranges from 52.44 to 24.32g/100g. The effect of the pre-treatment on Colour was also significant. The microbial analysis showed variations in the microbial also that were attributed to the areas of collection of the chillies or the type of treatment done to the chillies. There was no significant difference between oven-dried chillies and solar-dried chillies on the parameters of Colour, taste, astringency, bitterness, texture, and overall acceptability. The flavour, however, had some significant differences between solar and oven-dried chillies. The findings will inform on the commercial viability of dried chilli products concerning meeting food safety standards in Kenya to promote the industry's commercialization and value addition of chilli adoption. This can be done by solar drying fresh chillies and effectively storing the finally dried chillie products under aluminium packaging, showing the best nutritional composition preservation. Care should also be taken when handling both before and after drying to prevent recontamination of the final dry product. This study, therefore, will guide the solar drying technique of fresh chillies from the study of the quality characteristics and storage of the finally dried chillies from the moisture sorption isotherm and the storability study. The sensory analysis guided the consumer's acceptability of the finally dried chillies.